Annual Report on Form 10-K

Item 14(c) and (d)

Certain Exhibits

Year Ended October 31, 1994

Applied Signal Technology, Inc.
160 Sobrante Way
Sunnyvale, CA 94086


Exhibit Index


Applied Signal Technology, Inc.
Exhibit 11.1

Computation of Net Income Per Share
(in thousands except per share)

                                                 Three Months Ended  Three Months Ended
                                                 __________________  __________________

                                                 Oct. 31,  Oct. 31,  Oct. 31,  Oct. 31,
                                                   1994      1994      1994      1994
                                                 ________  ________  ________  ________

Number of Shares

  Weighted average outstanding common               7,336     7,406     7,375     5,867

  Dilutive common stock equivalents of:

     Convertible preferred shares (1)                 ---       ---       ---       695     

     Stock options (treasury stock method) (2)        265       311       394       278

  Shares assumed to be outstanding under SEC Staff

     Accounting Bulleting Topic 4D (3)                ---       ---       ---        49
                                                 ________  ________  ________  ________

                                                    7,601     7,717     7,769     6,889
                                                 ________  ________  ________  ________
                                                 ________  ________  ________  ________

Net Income                                        $1,635     $  562    $3,140    $3,264
                                                 ________  ________  ________  ________
                                                 ________  ________  ________  ________

Net Income per share                              $ 0.22     $ 0.07    $ 0.40    $ 0.47
                                                 ________  ________  ________  ________
                                                 ________  ________  ________  ________

(1) Convertible preferred shares automatically converted in connection 
with initial public offering in March 1993:  
Series A--700; Series B--326; Series C--478; total of all series--1,504.

(2) Effect of assumed excercised all dilutive stock options and assumed 
repurchase of shares from proceeds.

(3) SEC Staff Accounting Bulletin Topic 4D, for periods through 
January 1993, i.e., up to initial public offering.

Applied Signal Technology, Inc.
Exhibit 23.1

Consent of Ernst & Young LLP, Independent Auditors

We consent to the incorporation by reference in this Annual Report (Form 10-K) of Applied Signal Technology, Inc. of our report dated December 2, 1994, included in the 1994 Annual Report to Shareholders of Applied Signal Technology, Inc.

We also consent to the incorporation by reference in the Registration Statement (Form S-8 No. 33-21236) pertaining to the Applied Signal Technology, Inc. Non-Incentive Stock Option Plan of our report dated December 2, 1994, with respect to the financial statements incorporated herein by reference in this Annual Report (Form 10-K) of Applied Signal Technology, Inc.

Palo Alto, California
January 25, 1995